Contingency Theory

Chapter 6
 2

Overview

 Contingency Theory Approach Perspective

 Leadership Styles

 Situational Variables

 Research Findings of Leader Style Effectiveness

 How Does the Contingency Theory Approach

Work?
Contingency Theory Approach Description
Perspective

Contingency theory is a leader-match theory

(Fiedler & Chemers, 1974)
Tries to match leaders to appropriate situations

Leader’s effectiveness depends on how well the

leader’s style fits the context
Fiedler’s generalizations about which styles of
leadership are best and worst are based on
empirically grounded generalizations

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Contingency Theory Approach Description

Definition

Effective leadership is contingent on matching a

leader’s style to the right setting
Assessment Based On:

Leadership Styles

Situational Variables

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Leadership Styles
Leadership styles are described as:
Task-motivated (Low LPCs)
Leaders are concerned primarily with reaching a
goal
Relationship-motivated (High LPCs)
 Leaders are concerned with developing close
interpersonal relationships

Leader Style Measurement Scale (Fiedler)

Least Preferred Co-Worker (LPC) Scale
High LPCs = Relationship-motivated
Low LPCs = Task-motivated

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Leader-Member Relations

Refers to the group atmosphere and the

degree of confidence, loyalty, and attraction
of followers for leader
 Group atmosphere –
Good – high degree of subordinate trust,
liking, positive relationship
Poor – little or no subordinate trust, friction
exists, unfriendly

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Task Structure
The degree to which requirements of a task are
clear and spelled out
High Structure –
requirements/rules - are clearly

stated/known
path to accomplish - has few alternatives

task completion - can be clearly demonstrated

limited number - correct solutions exist

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Task Structure continued
Low Structure –
requirements/rules - not clearly

stated/known
path to accomplish - has many alternatives

task completion - cannot be clearly

demonstrated/verified
unlimited number - correct solutions exist

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Situational Variables/3 Factors
Position Power
Designates the amount of authority a leader
has to reward or punish followers
Strong Power –
authority to hire or fire, give raises in rank

or pay
Weak Power –
no authority to hire or fire, give raises in

rank or pay
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Situational Variables/3 Factors
3 Factors - determine the favorableness of
various situations in organizations
Situations that are rated:
Most Favorable -

good leader-follower relations,

defined tasks (high structure), &
strong leader position power
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Situational Variables/3 Factors
Situations that are rated:
Least Favorable -

poor leader-follower relations,

unstructured tasks (low structure), &
weak leader position power
Moderately Favorable –

fall in between these extremes

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Research Findings of Leader Style Effectiveness

Favorableness
LPC Score Definition
of Situation

Very Favorable Situations going smoothly

Low
Very Unfavorable Situations out of control

Moderately
Situations with some degree
High of certainty; not completely
Favorable
in or out of leader’s control

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Research Findings of Leader Style Effectiveness
Reasons for leader mismatch, ineffectiveness:

 LPC style doesn’t match a particular situation; stress

and anxiety result

 Under stress, leader reverts to less mature coping

style learned in earlier development

 Leader’s less mature coping style results in poor

decision making and consequently negative work
outcomes

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 How Does the Contingency Theory Approach
Work?

 Focus of Contingency Theory

 Strengths

 Criticisms

 Application
Contingency Theory Approach
Focus
By assessing the 3 situational variables, any organizational
context can be placed in one of the 8 categories
represented in the Contingency Theory Model
After the nature of a situation is determined, the fit
between leader’s style and the situation can be evaluated

Overall Scope
By measuring Leader’s LPC score and the 3 situational
variables, it is possible to predict whether a leader will be
effective in a particular setting

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How Does Contingency Theory Work?
Low LPCs – Effective in Categories –
Task-Oriented 1, 2, 3, & 8

High LPCs – Effective in Categories –

Relationship-Oriented 4, 5, 6, & 7

Middle Effective in Categories –

LPCs
1, 2, & 3
If individual’s style matches appropriate category in the
model, leader will be effective
If individual’s style does not match appropriate category in
the model, leader will not be effective
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How Does Contingency Theory Work?
Example:
Situation
Leader–Member Relation – Good
Task Structure – High
Position Power – High
Category – 1
Low LPC – (Individual who is task-oriented will be
effective)

By measuring Leader’s LPC score and the 3

situational variables, it is possible to predict
whether a leader will be effective in a particular
setting.
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 Strengths
Empirical support. Contingency theory has been
tested by many researchers and found to be a valid
and reliable approach to explaining how to achieve
effective leadership.
Broadened understanding. Contingency theory
has broadened the scope of leadership understanding
from a focus on a single, best type of leadership (e.g.,
trait approach) to emphasizing the importance of a
leader’s style and the demands of different situations.
Predictive. Because Contingency theory is
predictive, it provides relevant information regarding
the type of leadership that is most likely to be
effective in particular contexts.
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 Strengths
Not an all-or-nothing approach. Contingency theory
contends that leaders should not expect to be effective in
every situation; thus companies should strive to place
leaders in optimal situations according to their
leadership style.

Leadership profiles. Contingency theory supplies data

on leadership styles that could be useful to organizations
in developing leadership profiles for human resource
planning.

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Criticisms
Fails to fully explain why leaders with particular
leadership styles are more effective in some situations
than others
Criticism of LPC scale validity as it does not correlate
well with other standard leadership measures
Cumbersome to use in real-world settings
Fails to adequately explain what should be done
about a leader/situation mismatch in the workplace

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Application
Useful in answering a multitude of questions
about the leadership of individuals in various
types of organizations
Helpful tool to assist upper management in
making changes to lower level positions to
ensure a good fit between an existing
manager and a certain work context

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